public policy to promote technology transfer in chile

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Public policy to promote technology transfer in Chile – Licensing, technology transfer offices and technology transfer hubs: Case study

contribution to the OECD TIP Knowledge Transfer and Policies project

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Public policy to promote technology transfer in Chile – Licensing,

technology transfer offices and technology transfer hubs: Case

study contribution to the OECD TIP Knowledge Transfer and

Policies project

Author: Etienne Choupay (Innovation Division, Ministry of Economy-Chile)

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Table of contents

Executive Summary .............................................................................................................................. 4

1. Overview ............................................................................................................................................. 5

2. First stage: Technology transfer training of professionals ............................................................ 6

3. The Creation of OTLs ....................................................................................................................... 7

4. Recent studies about OTLs performance ........................................................................................ 8

5. Towards a technology transfer off campus model: Technology Transfer Hub ........................... 9

6. Possible implications for other countries....................................................................................... 14

References ............................................................................................................................................ 15

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Executive Summary

Since 2011, the Ministry of Economy of Chile through Corfo -the main public agency of

innovation in Chile- began to move towards an ecosystem of technology transfer, focusing

firstly on strengthening human capital competencies of professionals from universities and

research centers in management, commercialization and transfer of R&D results.

With professionals already trained by different international institutions, the next step since

2011 till now has been the Creation and Strengthening of Transfer and Licensing Offices

(OTL) inside universities and research centers.

Given the evolution of OTLs, in 2015 Corfo decided to design and implement a

specialization model of "on campus-off campus" functions of technology transfer, creating

the “Technology Transfer Hubs” to increase the amount of technological businesses based

on their research and development results and generated in universities and technological

centers, and their national and international potential. This “on campus-off campus” model

recognizes the necessity to continue strengthening commercialization capacities and

technology transfer within the universities. It also considers moving forward in more

specialized competencies to improve the probabilities of a successful global

commercialization.

In 2016, three hubs composed by 26 universities, technological centers, companies, unions,

angel investors’ networks, investment funds of risk capital, among others actors were

funded for five years.

For other countries of the continent the case of Chile can be a practical and concrete

example of how through the design of bottom up public policies to promote technology

transfer between the public sector and universities, especially trough offices inside

universities and independent hubs outside universities, a country can advance into

strengthening its technological transfer ecosystem through a model on campus-off campus.

Therefore, there is a potential to move forward in the consolidation of an ecosystem of

technology transfer throughout the Latin American continent working together with other

countries in a continuous process of learning of the best practices.

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1. Overview

In the last decade, the total public funding for main actors of the Chilean Science,

Technology and Innovation System has increased. Universities remain a fundamental part

of the system spending more than 38% of Chile's total investment in research and

development. It is estimated that the resources spent by universities in the last 7 years

exceeded US$ 1,200,000,000 in total. This has generated an increase in scientific

productivity reaching 7.900 Web of Science papers in 2014 (1.5 times more than the 5.406

papers in 2010).

Although this increase is recognized, Chile remains far away from OECD countries in R&D

expenditure (while Chile invests only 0.39% of GDP in research and development, the

OECD countries invest an average of 2.4%). Even more, the increase in scientific

productivity is not reflected in commercialization and technology transfer indicators, for

example with a low number of patent applications, licenses, and spin offs.

Undoubtedly, universities play a key role in the Chilean ecosystem as the main institutions

producing knowledge. Regarding this role, several diagnoses identify the need to legitimize

the "third mission", understood as the contribution to society. This is aimed to develop and

strengthen the use and exploitation of knowledge outside the academic environment (World

Bank, 2009, Verde, 2016).

Chilean universities have a long history of links with society and industry, which has

worked mainly from a perspective of extension and social commitment (Grao et.al., 2014).

Only in recent years the notion that universities can generate incomes from the

commercialization of scientific-technological knowledge has been promoted, which for

many universities remains as an activity that conflicts with their public mission.

In 2009 The World Bank pointed out the need to improve the regulatory-institutional

framework at a national level to foster technology transfer, which was fragmented and

outdated comparing to international practices.

That same year, the National Institute of Industrial Property (INAPI), under the Ministry

of Economy, began its activities. Since then, INAPI's work has focused on generating

"efficient systems for the use and protection of industrial property rights, promoting

innovation, entrepreneurship and knowledge transfer to society” (INAPI, website).

Subsequently, important progress has been made, including the validity in Chile of the

Patent Cooperation Treaty (PCT) in 2012, and the designation of INAPI as one of the 19

patent offices worldwide with PCT authority ISA/IPEA (International Searching Authority

/ International Preliminary Examination Authority).

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2. First stage: Technology transfer training of professionals

In 2009, the World Bank’s "Fostering Technology Transfer and Commercialization: Chile"

report remarked Chile’s need to stimulate the development of technology transfer, focusing

on the following areas:

To improve institutions, regulations and practices for an efficient and dynamic

intellectual property management system.

To develop strategic partnerships for oriented science and improvement of National

Public Technological Institutes.

To accelerate the creation of technological companies.

To develop skills and competencies to support the above-mentioned companies.

To stimulate the universities’ "third mission" to contribute economic growth.

To stimulate demand for technology and innovation.

To stimulate a culture of entrepreneurship and innovation.

In each one of these areas, Chile presented gaps that must be closed in order to obtain a

more efficient and effective level of technology transfer.

In response to this report and the recommendations of the OCDE (2007), Corfo -the main

public agency of innovation in Chile - began to move towards an ecosystem of technology

transfer focusing firstly on strengthening human capital competencies; funding the training

of professionals from universities and research centers in management, commercialization

and transfer of Research and Development results. The professionals were trained by the

Association of Universities Technology Managers (AUTM) of USA.

That same year, a group of Chilean professionals created RedGT (Network of

Technological Managers). This initiative was driven by the need of these professionals to

coordinate themselves on topics related to technology transfer. RedGT´s mission is to

develop crosscutting actions that promote technology transfer in Chile, being a valid actor

connecting university, companies and public sector. Its vision is to become a national and

international reference in technology transfer.

In the same way, through the "Go to Market" program, Corfo supported the

commercialization of research and development results and Chilean technologies in global

markets. This program included the participation of international entities in technology

transfer, which supported the process of linking and commercialization of research and

development results in global markets.

Parallel to this initiative, Corfo carried out the Technologies with Commercialization

Potential Portfolio program in 2012, whose beneficiaries were technological centers,

universities and technological institutes as well as companies. In this program, the

beneficiary had to contract a foreign training entity to support the process of technology

transfer and commercialization of research and development results. It was developed in

collaboration with the Stanford Research Institute (SRI).

According to Corfo (2013), the professionals supported in training of technology transfer

between 2012-2013 were 171.

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3. The creation of transfer and licencing offices (OTLs)

Having already funded the training of professionals, in 2011 Corfo launched the first

Program for the Creation and Strengthening of Transfer and Licensing Offices (OTL). This

program was addressed to universities and National technology centers. 18 projects were

supported including 21 institutions (3 associative projects).

As a result of the program, between 2012-2013 all the OTLs developed: new policies,

procedures and regulations of intellectual property; new information systems; an

international benchmarking; and a work plan for 5 years.

The budget of this program was US$3.600 millions for 18 projects. Even though this budget

was very helpful for a starting point of the OTLs, it was not enough to keep a foundation

structure of the offices focused on a sustaintable model of financing.

Posteriorly, in 2014 CORFO launched a second Program to strengthen OTLs, which aimed

to support the consolidation and positioning of the offices. With this new program, it was

expected to increase the number of technologies with market potential, disclosures,

research and development contracts, licenses, consultancies and collaborative research with

companies. Through this Program 15 OTLs were funded.

In the same year, Corfo launched the Program for Strengthening Human Capital in

Technology Transfer. This program allowed researchers, professionals, technicians, and

regular postgraduate students, to hire a foreign training entity.

Even though an important number of professionals were trained by foreign experts in the

first Program, the result was not satisfactory at all. This was due to the fact that the reality

in which experts work was very different from the Chilean one. Consequently, Corfo

maintained international experts in the second program, but this time they were previously

evaluated.

Through this tender, Corfo supported the training of 211 people, in subjects such as

research and development contracts, licenses, spin-offs and entrepreneurship. Finally, with

the objective of creating new OTLs and consolidating existing ones, in 2015 Corfo held a

third tender and started a new stage supporting technology transfer programs, with a

specialization model of "on campus-off campus" functions. It recognizes the need to

continue supporting OTLs capacities as well as to support more specialized skills to

improve the commercialization of technologies with global projection. (the off-campus

component will be discussed further in Section V)

The on campus part of the model consists in the consolidation of existing OTLs. Among

the promoted functions were the identification and collection of research and development

results (scouting); and the fostering of a culture which strengthens a research oriented to

solve problems and cover the needs of the productive sector and society.

The specific objectives are:

To implement a 5 year strategic development plan for each OTL.

To position the OTL within the university or technology center and in the national

ecosystem.

To increase the linkage of the OTL with researchers.

To have a systematic methodology for the design of portfolios of technologies with

market potential and business plans.

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To increase the commercialization of results from research and development.

To increase the creation of spin offs

Finally the expected results are:

An increasing number of licensing agreements.

A definition of procedures and processes of technology management

Good practices with international standards in licensing and research and

development contracts.

An improvement of portfolios with marketable technologies.

Current OTLs projects will conclude in 2018 and Corfo will continue to support OTLs as

part of the on-campus model from 2018 to 2020.

4. Recent studies about OTLs’ performance

In 2016, the Innovation Division of the Chilean Ministry of Economy tendered the

Qualitative Study about the current state of Technology Transfer in Chile

(http://ctie.economia.cl/wp-content/uploads/2017/08/Estudio-cualitativo-TT-en-Chile-

2016.pdf). The tender aimed to collect information on the perception of public and private

actors about the development of technology transfer in Chile, identifying limitations and

strengths to propose recommendations for public policy.

From this study and after 4 years of Corfo supporting OTLs, it is important to share some

insights about the performance of OTLs:

University authorities and OTLs professionals declare that offices have become

much better known inside universities.

Particularly in research centers and small universities, OTLs are valued for the great

support they provide to researchers.

In terms of technology management issues, most of OTLs have achieved the

committed indicators and goals, e.g. the design of policies or intellectual property

regulations; preparation or updating of regulations. They have also carried out

activities to evaluate research results in order to know the potential of

appropriability and commercialization in a preliminary way. This is implemented

by proposing and assisting in the hiring of external consultants specializing in the

subject.

One of the most important activities has been the development of technology

portfolios, standing out as an advance for OTLs. However, the portfolio has not

generated the expected result, since companies do not use it to search for

technological solutions.

A critical point is the technological scouting in universities and research centers

with low productivity of research results. In these institutions, OTLs must invest

more time searching transferable results and often with researchers without interest

in technology transfer. In institutions doing more research, this task has been

http://ctie.economia.cl/wp-content/uploads/2017/08/Estudio-cualitativo-TT-en-Chile-2016.pdf

http://ctie.economia.cl/wp-content/uploads/2017/08/Estudio-cualitativo-TT-en-Chile-2016.pdf

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focused on academics who are much more motivated and interested in the impact

of their research.

The kind of relationship between OTL and its host affects technology transfer,

especially in more complex universities. In complex universities, with some degree

of internal autonomy and problems of coordination, the OTL´s work is harder. Even

in one of the analyzed cases in the study, some Faculties also perform same tasks

as the OTL, generating criticism for the excessive institutional centralization in the

offices.

OTLs have contributed to change the incentives for researchers to become more

involved in technology transfer activities. Historically researchers have little valued

patents as a technology transfer mechanism. Yet this reality has begun to change

gradually in some universities and research and development centers. In addition,

the incentive that establishes the participation of academics in some percentage of

the profit of the research commercialization also contributes to the researchers’

participation.

Regarding the commercialization of research results, OTLs managers report a great

diversity of realities and results, depending on the degree of maturity of the OTL

and its team. In some cases there is a great progress, and in others it has been weak.

Bigger gaps are found: in the phase of the TT process; the lack of TT team’s

experience; and the high costs of hiring external brokers. Although many of the

interviewees have obtained patents, few of them claim to be successful in

commercialization.

Many OTL managers share the perception that, over time, these offices should tend

to self-sustain economically.

The study also revealed some challenges for the OTLs as regards their future performance:

A pending task in many institutions is having a policy which regulates conflicts of

interest and projects with technological base as well as standardized contracts for

technology transfer.

In regards to the latter, there is a challenge to ensure the legitimacy of the rules

within the academic community. In order to achieve this, a discussion is needed in

which all the administrative and academic representatives of the research

institutions can participate.

In the majority of the university and research centers’ OTLs weaknesses can be

observed as regards their capacities for negotiating and commercializing research

products.

5. Towards an off campus model: Technology transfer hubs

Considering the outcomes of the OTLs’ funding between 2012 and 2014 it was possible to

increase the effort of technology transfers, generating 220 disclosures and 66 new patent

applications. Notwithstanding this improvement evidence, there are still few results

commercialized effectively.

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As a result of insufficient commercialisation, Corfo opened the “Technology Transfer Hub”

program in 2015. This program aims to increase the amount of technological businesses

based on their research and development results and generated in universities and

technological centers, and their national and international potential. It also aims to increase

the productivity and diversification of the Chilean economy by means of the creation of

Technology Transfer Hubs.

These hubs are associative organizations gathering a number of 26 universities,

technological centers, companies, unions, angel investors’ networks, investment funds of

risk capital, among others. In addition to OTLs, the hubs must perform off campus

functions, e.g. technological surveillance and competitive intelligence; intellectual property

management; license commercialization; and creation and assistance to spin-offs. It also

involves filling gaps of capacities required by the OTLs by means of their own tasks or the

coordination and intermediation of external services (Corfo, 2015).

When analyzing the international picture -such as New Zealand (Uniservices and KiwiNet),

Portugal (UTEN), France (SATT), Canada (NCE-KM) and the United Kingdom (N8)- the

development of an associative model of technology transfer can be proved. Many

universities and scientific-technological centers unite to put forward a common project of

technology commercialization based on research and development.

The various associative models are based on coincident diagnoses with the Chilean reality.

They focus on the necessity to have a critical mass of research and development, and

specialists inside and outside of universities and scientific-technological centers. Thus

technology transfer associative entities have been formed with public funding (France,

Portugal, and Canada) and resources from the institutions generators of research and

development (New Zealand and Australia).

Additionally to the critical mass, the analysis of the international experience shows the need

for sectoral specialization to find synergies and human capital with experience in

technology transfer to specific industries. On the other hand, developing capacities along

the territory is another relevant element of the international experience. In this sense,

France chose an association model by territorial areas.

Moreover, the analyzed international experience delineates the specialization of functions

within the institutions which generate research and development and the associative entity

formed for the technology transfer. This allows to define roles and functions clearly for

each of the actors participating in the associative model.

5.1. Orientation principles in the design of technology transfer hubs

While in the last 5 years many advances have been achieved in the capacities of technology

transfer -justified by the increase in the number of disclosures, patents and licenses- some

gaps still remain among those which were identified in 2009:

1. Insufficient critical mass of applied research and development: the volume of basal

research and development available for institutions in Chile is under the level which allows

to have a constant flow of projects with potential to be developed as business with

technological base. The size of the national institutions and the research level generated by

them hinder the achievement of and efficient scale for transference and commercialization.

2. Only a small amount of applied research and development is of commercial interest:

Universities and scientific-technological centers do research and development mainly in

order to generate knowledge and, to a less extent, as a specific demand from the productive

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and/or social sector. Only 4.4% of the budget destined for research and development comes

from productive companies (Minecon, 2013). In other words, the majority of the research

is science/ technology push, and not market pull. Nevertheless, it has been recognized that

a strategy more oriented to promote market pull may have benefits related to a higher

efficiency of private resources leverage. this is the result of an increase in the original

product demand and/or services involved; at least in some of the sectors.

3. There are still limited technical competencies for technology transfer: Despite the

advance in the creation and strengthening of human capital in the matter, highly technically

experienced professionals are needed. The areas where these professionals are required are

research, intellectual property, business scaling as well as technologically based

entrepreneurial projects directed to national and international markets. In addition to these

professionals, great networks of funding and investment are also needed.

In order to ensure that the competencies are reinforced in those key fields for the

development of the country, the technology transfer HUBs will have to focus primarily in

the sectors where research and development are carried out in Chile.

According to the NABS classification (Nomenclature for the Analysis and Comparison of

Scientific Budgets and Programmes, OECD, 2007), these sectors are: agriculture (including

aquaculture); health; industrial production; technology; and energy. They were selected due

to the fact that they concentrated 82% of the applied research and development carried with

public funding in 2014 in Chile.

Additionally, in order to guarantee the coverage of the technology transfer capacities in the

territory, the formation of HUBs will have to consider an appropriate coverage of regional

entities dedicated to research and development. Based on these design criteria, the

formation of a HUB must fulfill the following lineaments:

Ensuring a minimal critical mass of applied research and development in the

country.

Achieving specialization in priority sectors which carry out research and

development and a minimal volume of their products.

Ensuring regional representation for an appropriate national coverage as regards

the number of participants and and research and development number.

Having a minimum of participants

The main objective of the technology transfer hubs is to increase the amount of

technological businesses based on the results generated by research and development, and

their national and international projection. The results are generated by universities, and

national technological centers to increase productivity and diversification of the Chilean

economy.

The specific objectives are:

To implement an associative model with function specialization on campus-off

campus which achieves the necessary scale for the HUBs’ sustainability in the near

and distant future.

To attract and generate specialized human capital in intellectual property

management, technology transfer and models of linkage with the industry, such as

technological contracts, open innovation, among others.

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To improve the market potential of the technological actives generated by the

research and development projects, adopting the best international practices in

technological management.

To increase the creation of entrepreneurial projects with technological base from

the results of research and development; and the amount of private invested

resources, boosting the access to a risk capital in early stages nationally and

internationally.

To strengthen the positioning of the on campus off campus technology transfer

entities in the national innovation and entrepreneurship ecosystem.

The expected results of this new program are:

The HUB’s strategic development program of 10 years which considers an

administration and business model which allow the achievement of its objectives

and sustainability.

The implementation of an associative model with specialization of on campus off

campus functions

An increase in the quantity and quality of the actors’ competencies of the system

of innovation in industrial and intellectual property management; in technology

transfer and of the links with the industry and in open innovation.

An increase in the value of technological actives and innovations portfolio,

improving the disclosure, intellectual and industrial management, and the new

technological business with global focus.

An increase in the number and amounts of the applied research and development

contracts made by universities and companies; licenses and collaboration projects

between university and company in strategic sectors of high impact.

An increase in the commercialization of Chilean technologies abroad.

An increase in the number of spin-offs and entrepreneurial projects of technological

base.

An increase in the number of spin-offs of technological base which obtain funding

for their scaling.

So as to fund the hubs, Corfo launched a tender in 2015 to grant a subsidy of an 80% of the

project’s total cost, with a maximum of US$ 8.000.000 (eight million dollars for 5 years).

The provisional recipient has been defined as the profit or nonprofit legal, public, or private

person constituted in Chile who receives the subsidy temporarily, waiting for the

constitution or selection of the definite recipient.

The recipients must be Universities, Professional Institutes and National Scientific-

Technological centers. Their participation will also give appropriateness to the project.

The duration of the projects must be a maximum of 5 (five) years, renewable for a

maximum of 16 (sixteen) months after the decision of Corfo; or by a justified request by

the recipient prior to the original deadline.

The projects were selected after an international evaluation with external evaluators. After

that, an internal commitee in Corfo reviewed the proposals, the international evaluation and

decided to fund the 3 proposed projects: HUBTEC CHile, KNOWHUB and APTA (Andes

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Pacific Technology Access), which prioritarily focused on agriculture; health; industrial

production, technology and energy. Each Hub is working in the same areas and is composed

by a group of universities, companies, research centers and technological centers.

The “on campus-off campus” model (illustrated in Figure 1) recognizes the necessity to

continue strengthening commercialization capacities and technology transfer within the

universities. It also considers moving forward in more specialized competencies to improve

the probabilities of a successful global commercialization.

The on campus component refers to the current OTLs’ roles linked to the

identification and active recollection (scouting) of the research and development

results in universities, scientific-technological centers or other institutions

generating knowledge. It also entails to promote a culture which boosts research

“with a purpose”-more oriented to solve problems and give solutions to the needs

of the productive sector and society.

The off campus component refers to the work of an entity which has capacities and

highly specialized human capital for the scaling and technology transfer of the

results of research and development of universities, scientific-technological centers

or other institutions generating knowledge. It is oriented to the creation of

businesses in different industries in global markets with access to networks of

support in the internationalization of entrepreneurial projects of technological base.

This task is done in accordance to the extent and operation rules which define their

component members. It also involves the task of filling capacity gaps required by

OTLs by means of their own tasks, or through coordination and intermediation of

external services.

Even though this model has been implementing since 2016 one of the main potential risks

could related with probable tensions between OTLs and Hubs, given the selection criteria

that hubs have for the commercialization of technologies, which may influence the OTL to

decide to commercialize by itself. This tension can occur above all for those universities

with capacities for commercialization where the decision to commercialize through the

OTL or the Hub is more complex.

Finally, the on-off model of technology transfer is illustrated in Figure 1, with Chilean

technology transfer offices inside universities and research centers working on scouting of

research results with commercialization potential and the hubs focused specifically on

commercialization and creating new technological businesses.

To date, Corfo is supporting three technology transfer hubs and 29 offices of transfer and

licensing. In their first year, the hubs have designed their own administration, business

models, and intellectual property policies. These advances will conclude with their

application to legal entities and being independent from universities and research centers.

Shortly they will start contracting the main management teams.

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Figure 1. On campus - off campus model of technology transfer

Source: Corfo, 2016

6. Possible implications for other countries

Given the participation of Chile in the Pacific Alliance, particularly in the Technical

Innovation Group, it should be noted that technology transfer is one of the issues that have

been prioritized in a public-private agenda. Together with the Inter-American Development

Bank (IDB), the Group is currently developing the project “Fostering the technology

transfer in Pacific Alliance countries”.

This is due to the promotion of training of professionals in technological management,

collaborative technological development, and generation of networks among the different

actors of the Pacific Alliance ecosystem through the Business Accelerators Network

(AcelerAP), Angel Investors (AngelesAP), Network of Innovation Agencies (InnovAP),

and the future Network of technology transfer offices (TechTransferAP). Especially trough

a joint work of technology transfer offices of PA countries the project aims to promote the

transfer of technologies between the countries allowing both established companies and

Start-Ups the absorption, use and commercialization of technologies in a cross-border way.

Notwithstanding the above, for other countries of the continent the case of Chile can be a

practical and concrete example of how through the design of bottom up public policies to

promote technology transfer, especially trough offices inside universities and independent

hubs outside universities and with Corfo accompaniying them and help them to achive their

objectives, a country can advance into strengthening its technological transfer ecosystem

through a model on campus-off campus. Therefore, there is a potential to move forward in

the consolidation of an ecosystem of technology transfer throughout the Latin American

continent working together with other countries in a continuous process of learning of the

best practices.

Off Campus

• Commercialization of complex technologies coming

from technology transfer offices

On Campus

• Promotion of an innovation culture

• Scouting of research results with commercialization

potential

• Commercialization of technologies (from universities

and research centers)

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

OTLn

HUB

OTLn

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References

Grao et.al. (2014). La Tercera Misión (3M) de las Universidades: buenas prácticas en

América Latina. (Proyecto VINCULAENTORNO). México: Imaginarial.

OCDE (2007). OECD Reviews of Innovation Policy: Chile

Verde (2016). Estudio cualitativo sobre el estado actual de la transferencia tecnológica en

Chile.

World Bank (2009). Fostering Technology Transfer and Commercialization: Chile

public policy to promote technology transfer in chile

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